Indian Jewelry Industry in 2021: What to Expect?

Jewelry has always been close to the heart of Indians. Be it special occasions or big festivals, Jewelry has played a noteworthy role in people’s lives. The Jewelry business is booming like never before all thanks to innovative approaches taken by Jewelry retailers

Jewelry statistics worth knowing for 2021

Whether a business is trying to determine how to start an online Jewelry business in India or they have an established business already, Jewelry market statistics can help throw some light on what to expect this year as the economy rises from the slump.

• The global estimated market size of the gems and Jewelry sector is expected to reach over US$480 billion by 2025 even though there can be times of slow growth post-pandemic. According to the Indian Jewelry industry analysis, the market size of the Indian Jewelry industry is expected to grow by US$103.06 billion by 2023 compared to 2019.
• The Indian Jewelry market size is amongst the biggest in the world. China and India are amongst the top consuming countries in the world. In fact, 29% of global Jewelry consumption is done by India. Currently, there are more than 300,000 gems and Jewelry companies in India and there is expected to be an increase in this number as new players enter the market.
• 7% of India’s total GDP contribution is made by the gems and Jewelry  industry. The industry plays a crucial role in India’s economic growth. Additionally, 15% of the total merchandise export is by the gems and Jewelry industry, further showing its significance. Currently, more than 4.5 million people are employed in this industry but according to experts, this number will surpass 8 million by 2022.
• The GJEPC (Gem and Jewelry Export Promotion Council) has said that the industry has largely contributed to foreign exchange earnings. India exports 75% of polished diamonds globally and this trend is likely to continue well into the future.
• The Indian Jewelry industry saw a slump during the pandemic. But the interest remained and customers started to look for Jewelry online which boosted online Jewelry shopping. By the end of 2020, as restrictions eased, demand for Jewelry started to increase and exports reached the same levels as pre-pandemic levels soon after.

Why jewelers should go ‘digital’ ?

The Jewelry business in India and its dynamics changed overnight as the pandemic raged on to every corner of the country. The whole world bore the brunt of the pandemic as businesses crippled in a matter of weeks and months. While the impact can still be felt, there is hope for every industry that is coming back on its feet. A majority of reports say that this shopping behaviour will last post-pandemic too. The question isn’t whether a shift to digital platforms is necessary, but the key question is when?

The pandemic changed how people shopped for Jewelry too. Earlier, it was a fun activity to try on Jewelry and that in-store experience was the reason why people went to brick-and-mortar stores. Today, the shift is evident. Lockdowns across the globe meant people couldn’t go to their favourite Jewelry store to shop for their Jewelry . Instead, they had to browse on the store’s app or website or both. The pandemic led to an unprecedented increase in interest in online Jewelry  shopping. While the spending decreased in this industry, just like in other industries, it is expected to get back to pre-pandemic levels this year. This is only possible if jewelers go the digital route.

Opting for a digital platform will enable jewelers to reach more people and make new connections. Whether through an app or website, jewelers can do better in terms of revenue generation when they opt for digital mediums. It provides the ability to showcase all products digitally. With the help of technologies such as mirrAR, jewelers can increase conversions. According to a Shopify report, using AR for products increases conversion rates by a whopping 94% when compared to no use of AR. jewelers can expect high ROI when they include AR in their offerings as they can expect higher levels of customer satisfaction due to improved experience.

Why does personalisation have the most attention?

Personalisation is one of the most effective CRO techniques. It also does wonders in driving higher customer retention and building lasting relationships with customers.

The future of the Jewelry business in India is expected to be tied around personalisation. Many Jewelry brands are already investing tons of resources in data analysis and solutions that are aimed at personalising their communication with the target audience.

For instance, if an online customer has viewed a certain type of necklace, you can automatically recommend them similar necklaces to personalise their shopping experience. Similarly, if a customer came to your physical store and purchased a bracelet, you can send them emails that are tailored around this purchase. Something like "that braid cluster diamond bracelet you purchased last month would go exceptionally well with our new collection of Millie cutout earrings".

Such a level of personalisation assures greater ROI. And that's precisely what we will see in the Jewelry industry in India in the coming years, with more retailers embracing it.

Why are jewelers open to partner with other brands?

In a new age of creativity, artists from various fields are teaming up with each other. In the fashion realm, these joint ventures have been mainstream for quite a while, and now the Jewelry industry in India is adopting this shift.  Starting a Jewelry business is something incredible. And developing it into a successful company is just as exciting. But reaching that phase requires tons of work. While some Jewelry businesses have long banked on paid ads on social media, such as Facebook and Instagram, the trend is gradually reaching its saturation point.

So, how to do Jewelry business in India in such a situation?

At a time when customers want to see credibility and expect higher brand engagement, partnering with other brands in different niches is a great move. A product-driven strategy, underpinned by partner marketing content, works miracles.

Teaming up with brands that complement their own products ensures wider reach and greater brand exposure. For example, Jewelry retailers can get together with other fashion brands and connect with their target audience who might be interested in Jewelry as well.

Such partnerships have been growing across different niches. And it’s time more Jewelry business owners get on board. Some of the top Jewelry brands are already paving the way with their own successful partner marketing campaigns. In the coming years, we may witness this trend deepen further and make a big mark in the future of Jewelry business in India.

Why is customer retention so important?

In 2021, searching for customers, keeping their attention, and retaining them for the long term has become increasingly tricky. Now with customers having a plethora of options, Jewelry businesses must constantly adapt to fulfil their customers' needs to keep them around. The significance of customer retention has never been more evident.

Also, engaging with an existing customer is easier and more cost-efficient than acquiring new ones. In fact, just a 5% rise in customer retention can increase a business’s revenue by 25-95%. Such numbers don't lie... Retaining customers brings businesses a great deal of ROI.

Sadly, even a casual Indian online Jewelry market analysis can highlight many retailers focusing too much on newer acquisitions, completely overlooking their existing customer base. For higher business sustainability and to achieve optimum returns, it’s almost essential for these retailers to have a clearly defined customer retention strategy. And that’s what, many market pundits believe, is expected in the coming years: A lot more focus on retaining existing customers. This is especially true, and much needed, for small and medium-sized  jewelers who don’t have a strong brand presence, which can result in higher Customer Acquisition Cost (CAC).

Why Try-on tech has become popular ?

The pandemic has been a major reason behind the push towards innovation and innovation is the key for the future of Jewelry  business in India. What wasn’t witnessed in years was witnessed within months across the globe. This goes on to show the massive potential of retailers and how they can tread unknown territory when innovation is the only key to survival. The virtual try-on technology received a hearty welcome during the pandemic because it helped retailers and customers. Retailers knew they could continue to provide the best experiences to customers. Customers had more time in their hands and they were happy that they could get an in-store experience hands-free while they sat on their comfy couch.

Virtual try-on takes off pressure from customers, which is why more people are preferring it over in-store shopping. Customers can easily try on as many products as they wish and they don’t have to go anywhere. Moreover, they can take their own time when selecting what to try on. This relaxed way of shopping means a higher chance of conversions. Virtual try-on technology gives the best of the in-store experience, which is trying on an item, and merges it with the convenience of online shopping. Virtual try-on has proved to boost customer engagement to the next level.

Retailers can expect virtual try-on tech to accelerate their revenue because more people are willing to try and then buy. Trying something on before making a purchase instills confidence in customers. It doesn’t expect them to make a purchase instantly as might be the case when they shop in-store where a salesperson is waiting for their decision. This confidence encourages shoppers to spend more after they try. Research shows businesses with virtual try-on facilities experience significantly lower return rates which can help cut costs for businesses and points to happier and satisfied customers. This can help improve brand image and can help in better business growth.

Try mirrAR

The virtual try-on feature isn’t an option anymore because if staying competitive is the goal of the retailer, then having this facility is almost mandatory. It is the road ahead for retailers if they want to survive now and stay relevant in the future. With a powerful solution such as mirrAR, jewelers have the option of allowing their customers to try on the Jewelry virtually. mirrAR enables jewelers to allow customers to virtually try-on items in-store, using their app, or on their website. The future of Jewelry retail is here. The question is, when are you willing to take the leap and unlock the possibilities that await?

Get more information about mirrAR or write to us at mirrar@styledotme.com for more information.